Central banks increase their investment in US bonds

- Boolean Bits - Dinesh Parekh

- Firmness seen in global silver prices

Against the black market, investors have started quoting the price of gold at $2,000 per ounce as the Fed meeting has begun and the dollar has softened. But gold softened and fell between $1991/1995 an ounce, supported by a four-day ceasefire between Israel and Hamas. In this, central banks are sidelining gold in favor of increasing reserves while considering its stability and liquidity as more important, ignoring its returns. Central banks are increasing investment in US government bonds.

Analysts say surveying why the bullish rally in the precious metal took place at this stage, rather than talking about US debt. How the 2021/2025 world battle days play out and many countries in no mood to destabilize the dollar support the bullish gold. Gold retreats to $2,000 an ounce for the first time since July. It has to be noted that despite the UK ban, Russian gold is sold in the international market and the gold goes to Switzerland through Dubai, and in 2023, 69 tons of Russian gold has been transported to China through Hong Kong and ease of trade has been achieved in China.

Mali has signed an agreement with Russia to set up a gold refinery in Mali's capital Bomato and has signed an agreement with the military government to refine 200 tons of gold. At the present stage, a picture of new purchases will be seen in precious metals like gold and silver and prospects will show a new surface. GRS states that the year 2024-2025 will see peak gold prices. In the year 2024, America will print a lot of new notes and it will have an impact on gold.

It remains to be seen how much of a discount Fed Chairman Jerome Powell's interest rate hikes are taken by analysts, who expect uncertainty in the Fed's interest rate hike policy and a cut in interest rates in the second quarter of 2024.

OIL PRICES It is difficult to say which direction oil will take as the OPEC oil meeting extends, with US crude prices as high as $75 per barrel, but will support a rally in gold prices. Gold analysts say that the demand for 24 carat gold jewelery in China and 22 carat gold in India will see a huge increase as the demand for gold for festivals, festivals and weddings increases in China and India. Which will not allow the price of gold to fall. India's gold import figures of 140-150 tonnes in October indicate that the demand for gold in India will continue to increase.

Dramatic story of escalating Ukraine-Russia war and temporary cease-fire between Hamas-Israel will tighten the world financial environment and people will invest their capital in gold and this will affect gold. Overall dollar weakness- strength, volatility in oil prices, uncertainty in the Fed's rate hike policy will compel investors to look towards buying gold. Overall, it will not be surprising if gold reaches the direction of 2100 to 2200 dollars per ounce.

In the world market, silver is gradually increasing from 2350 cents per ounce to 2370 cents and investors are currently attracted to invest. Speculators, funds, commercial firms and investors in New York's Comex market are shorting short-term and long-term contracts, signaling that they will remain bullish on silver.

Silver producers are hedging short-term and long-term production by stockpiling teak at these prices and trying to ramp up production.

The use of silver in the solar panel manufacturing sector, plans to increase the production of electric vehicles, in the computer sector in electronics and in the jewelery sector will increase the demand for silver in the long term, and it will not be surprising if the silver price level of 35 dollars per ounce will break in a short time. Analysts predict that with rising silver prices, revenues from old silver scrap will increase, with some supply of scrap to meet demand for silver to ease the shortage.

Overall, silver is said to underperform gold. So it is said that the demand for silver will determine the direction of the price of silver. The fresh buying has boosted gold prices and on Thursday, gold started quoting at Rs.63,200 per ten gram from Rs.61,600 per ten gram without the bill.

Gold smuggling is on the rise and new techniques are being used by smugglers to smuggle gold through passengers. Demand is increasing in silver showrooms and consumers are making wedding purchases ignoring silver prices.

Silver importers buy silver at every price, fix the rupee-dollar exchange rate, order silver and make a big profit in short term.

As there is a good demand for silver bullion and coins during Diwali, coin makers meet the market demand by minting new coins. Overall, fluctuations in global silver prices will determine local prices and silver will hit between Rs.73,000 and Rs.76,000 per kg.